Humans behind data science and debt collection

Debt collection is a sensitive subject and can be a daunting topic to broach. It comes as no surprise then, that people cringe at the idea of debt collection systems that are powered by data science and not people.  

Everyone responds differently to debt collection. It all depends on the amount and the company. Debtors tend to want to meet with us, as they are also policyholders and want to show their current situation and demonstrate a willingness to be amicable and cooperative.

Of course, if people receive robotic, automated reminders and warning calls, they are more reluctant to meet with us. That’s not what data science is about. We keep humans at the center of our interactions so that it’s not intimidating to meet with our field negotiators. On the contrary, we use data science to have better conversations and resolve problems quickly.

A debt collection meeting is probably quite unlike what many people may expect. The atmosphere of these discussions is more like a business meeting. We establish a common understanding of the situation, then negotiate and find an agreement, and finally establish a payment plan. Since each scenario is unique, it requires an intelligent and empathetic approach that’s adapted to each situation. In my role as a debt collector, I am able to discuss and negotiate with debtors, show my compassion, and demonstrate my understanding of the current problem they are facing.

Algorithms are first and foremost an aid for companies and debt collectors. They do not replace debt collectors in terms of decision-making. For example, algorithms can help predict collection dates and timelines, provide information based on data in the market, and how it impacts each unique case and situation. This extra information improves the quality of conversations with the debtor and ultimately leads to better outcomes for all. In addition, it streamlines administrative processes because it’s possible to anticipate what will be brought up by the debtor during meetings. This allows debt collectors to be prepared and to address specific concerns directly, enabling smoother conversations.

Debt collection assisted by data science is all about improving the human experience and having better conversations with the companies and businesses we advise. We counsel and support all types of companies wishing to protect themselves from the non-payment of services and goods.

It’s important to remember that data science remains a tool at the service of the collection officers using it, helping them make decisions and handle conversations. Every debt collection situation is unique, so a human touch – and requisite emotional intelligence – must always be present. With this in mind, debt collection doesn’t have to be a frightening or negative experience.